Insurance Tips from the Experts

Do I have to pay a penalty if I don’t have health insurance in 2018 or 2019? do i need form 1095-A?

Description

Federal tax reform legislation was signed into law on December 22, 2017 and contains a provision that eliminates the individual mandate penalty starting in year 2019. Some may have questions about how elimination of the individual mandate penalty may impact their health coverage. I will try to address these questions in this video and help you understand how the elimination of the individual mandate penalty may affect you. What does this mean? - The only coverage-related change made by the new tax law is that the individual mandate tax penalty will no longer be in effect beginning in 2019. - The health insurance coverage, including financial assistance (subsidies/tax premiums), will NOT change in 2018.- The individual mandate penalty remains in effect for 2018 coverage; which means you will need to be insurance if you want to avoid paying a penalty in 2018. What does the elimination of the individual mandate tax penalty mean for consumers? • For 2018, individuals who can afford health insurance but choose not to enroll for coverage will be required to pay a penalty. What is the penalty for year 2018? The annual penalty is the greater of:- $695 for each adult and $347.50 for each child, up to $2,085 per family.-2.5 percent of the tax filer’s annual household income minus the federal tax filing threshold.• For individuals who do not buy insurance because it would be “unaffordable” for them, in 2018 they may not be required to pay a penalty if they file for an exemption from the penalty. Please watch our video about the tax penalty and exemptions You may be excused from paying the penalty if you qualify and file an exemptionHere is a table outlining the timeline for when the individual mandate penalty applies:Also, when you file taxes you will need the Form 1095-A. This is your Health Insurance Marketplace Statement. (you will receive it in the mail at the beginning of the year) You can also contact your agent and they can help retrieving the form for you in case you didn’t receive it via regular mail.please subscribe to our channel for more videos! https://www.youtube.com/letstalkmoneychannel